Is this an example of market grading?

I happened upon this from eBay and am struck at the grade given to this coin. I assume it's because of the rarity of the coin, or would you grade this one XF40?

http://www.ebay.com/itm/1794-FLOWIN...657?pt=LH_DefaultDomain_0&hash=item2a527b2189

 

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I don't know maybe a little generous, but the grade doesn't seem too of to me. Don't forget that these were often poorly struck. Look at what is left of the adjustment marks.

I do think the price is crazy though. Should be almost 100K less.

 

So I was specifically referring to the scratches on the eagle. I'd assume those would body bag a lesser coin?

 

Those are adjustment marks made to the planchet to correct the weight before striking. These marks do not factor into the grade of the coin since it is how the coin was made by the mint.

 

How does Contursi keep getting high end '94s. He owned the magnificent SP-66 example which now holds the record for the highest price ever paid for a coin. Not to mention owning the king of Siam proof set, a 1943 PDS copper cent set and the center counter stamped Brasher doubloon. I'd really like to go play in his vault sometime.

 

Its a little bit of inflation, but I agree with the planchet adjustment marks comment. However, ignore those, and a 1878 Morgan in this condition is a VF35 or so. It got a bump due to what the coin IS, not market grading per se. Really rare coins usually get a "I am rare" bump.

 

Isn't that by definition a "market grade"?

 

I thought the grade was fair.

 

A classic market grade is adjusting the grade due to a particular coins visual appeal versus technical grade. A grade bump is a rare coin being graded higher due to its rarity versus its visual appeal.

 

I guess to me, if it's not purely a technical grade, than it's market graded. Maybe I'm being to literal here, but in my mind, that's how I see it.

 

Yes, I understand sir. So any adjustment for visual appeal versus technical grade is market grading. However, I simply believe rare coins, especially famous dates, get a special "rare coin grade bump" in addition to any market grading that may or may not happen. So a 1799 cent might be market graded to VG8 when technically it was a G06, and get a rare grade bump to VG10 due to it being a rare grade.

It helps explain a lot of dumb grades I see. This coin, with that reverse, simply is not an XF40 by any ANA grading standards I have ever seen, nor in relation to other slabbed early silver. Its a VF, 35 at best. The condition would not lend itself to be market graded for superior eye appeal. So, the only rational explanation is a rare date grade bump since it is a rare US coin. By many other coins series its not rare at all, but for US silver dollars its rare.

 

I agree 100% with that sentiment. For that matter, I don't mind it either. I just factor it in when viewing certain coins.

 

Do you mind giving me a link to read up on adjustment marks? I obviously have much more to learn about coins. I've heard about these before but never really focused on them. Thank you

 

Everyone who doesn't know about them should do the same. Many old scratches get passed off as "adjustment marks" to uninformed collectors. Basically, an adjustment mark is on the flan before striking, so it should be deepest in the recesses and less or absent on high points. A scratch is just the opposite, it should be deepest on high relief but light or absent on low areas. Complicating this is wear, where an old scratch could get worn on high points. The trick here is to REALLY focus on the protected areas. If the mark is lighter in protected areas than non-protected ones, its a scratch, even if the scratch has been worn down on the highest points. An adjustment mark should be visible in the most protected areas, since it was on the metal before it was struck.

Hopefully someone has a link with better explanation and pics for you.

 

Some info here. https://www.cointalk.com/threads/adjustment-marks-on-coins.201682/

 

Thank you both for your input! That makes sense and I'll keep that in mind when I can finally afford to start chasing the older US Type Coins for my set.

 

I don't doubt you Doug, but how could you distinguish post strike adjustments from damage?

 

I agree. Even if you suspected it, I am not sure I would buy it without absolute proof.